# San Augustine Royalty Deductions( UnderAethon, BP, XTO)
**URL:** https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787
**Category:** San Augustine County, TX
**Created:** [June 16, 2020, 8:06pm UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787 "2020-06-16T20:06:41Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@V-Landman](https://www.mineralrightsforum.com/u/V-Landman)
#### Post date: [June 16, 2020, 8:06pm UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787/1 "2020-06-16T20:06:41Z")
In some of the older 2006-2009 leases, it says the lessor/landowner is responsible for some of “the costs incurred by Lessee in delivering, processing, or otherwise marketing such gas.”
My question is, other than Ad Valorem and severance taxes, have these operators added any huge deductions that royalty owners notice and are noticeable on check stubs? Thanks, any info helps.
---
### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [June 16, 2020, 8:52pm UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787/2 "2020-06-16T20:52:20Z")
That would be a potentially dangerous phrase for a mineral owner but not uncommon in Texas. The possible charges might be for expenses of production, separation, gathering, dehydration, compression, transportation, trucking, processing, treatment, storage or marketing -just to name a few and they can really add up.
---
### Author:  [@V-Landman](https://www.mineralrightsforum.com/u/V-Landman)
#### Post date: [June 16, 2020, 9:04pm UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787/3 "2020-06-16T21:04:12Z")
Yeah, it’s weird. Most if not all of the Aethon leases carried over from Saint Marys, Cabot have that clause, and private equity-backed mineral buyers are making crazy offers $11-15k/NMA on those tracts in San Augustine regardless of that clause. So either these new private equity-backed buyers didn’t read that/don’t care, there is a premium in the area which normalizes the cost, or Aethon must have low-cost processing, delivering, and marketing. Just trying to get to the bottom of it!
---
### Author:  [@Bill\_Wagner](https://www.mineralrightsforum.com/u/Bill_Wagner)
#### Post date: [June 17, 2020, 3:10am UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787/4 "2020-06-17T03:10:19Z")
What units are you seeing highest offers? Lelia Wynn, KVG, King?
---
### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [September 14, 2020, 8:06pm UTC](https://www.mineralrightsforum.com/t/san-augustine-royalty-deductions-underaethon-bp-xto/57787/5 "2020-09-14T20:06:45Z")
This topic was automatically closed after 90 days. New replies are no longer allowed.